Trans Mountain CEO Mark Maki has advised against a hasty sale of the newly expanded Trans Mountain Expansion Project (TMX) oil pipeline, suggesting that a delay could lead to a better sale price once the asset has proven its value, reported Reuters.
The Canadian Government, which owns the pipeline, has spent C$34bn ($24.9bn) on the expansion and is not looking to be its long-term owner.
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The expanded Trans Mountain pipeline began operations in May 2024 and can transport up to 890,000 barrels per day (bpd) of crude oil.
The pipeline, connecting Alberta’s oil to the Westridge Marine Terminal in Burnaby, British Columbia (BC), for overseas shipping, has seen slower uptake due to high tolls covering construction overruns.
This has raised concerns about its revenue potential and the government’s ability to find a private buyer.
Maki stated that the pipeline is operating at around 85% capacity in the second quarter, below the forecasted 96% annual utilisation starting in 2025.
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By GlobalDataDespite the slow start, March saw the pipeline nearly 90% full, and Maki remains optimistic about Asian market demand supporting long-term utilisation.
Maki mentioned that Trans Mountain is working on capacity optimisation projects that could increase the pipeline capacity by 200,000–300,000bpd. He believes it is sensible for the government to wait until these improvements are in place before selling.
Maki said: “It is ultimately their decision. The one thing we have said consistently to the government is, ‘don’t hurry.'”
A regulatory hearing to resolve the tolling dispute between Canada’s Trans Mountain and its oil shipping customers is set for late 2025, which could further clarify the pipeline’s financial outlook.
